Cyber Security Industry Growth Rate Will Reduce

The Cyber Security world is suffering from the economic conditions created by Coronavirus. In early 2020 it seemed that, with predictions estimating a growth of about 8-10% or higher, the industry would continue to thrive throughout the year and beyond. Now, with the significant impact of COVID-19 and the fears of a prolonged global recession, the cyber security industry is expected to only see minimal expansion this year.

Whilst figures differ between researchers, most analysts think that growth rates for cyber security firms will be reduced over 2020 to 2021. 

The Global Cyber Security Market Analysis report from ResearchAndMarkets says that the market is expected to grow from $149.46 billion in 2019 to $152.21 billion in 2020 at a compound annual growth rate (CAGR) of 1.83%. The slow growth is mainly due to the COVID-19 outbreak that has led to restrictive containment measures involving social distancing, remote working, and the closure of industries and other commercial activities that led to decline in the bottom line. 

As a result, companies' budgets for cyber security software is expected to decline. The market is then expected to recover and reach $208.28 billion in 2023 at CAGR of 11.02%.

Whilst the specialist Tech industry research firm Canalys has predicted that growth rate could still be as high as 5.6% (with a low estimate of 2.6%) this year, some groups are less optimistic. From instance, analysis from Gartner has projected that industry growth for cyber security will be as low as 2.4% in 2020.

Explanations for this follow a similar pattern, COVID-19 has negatively impacted businesses and in turn company IT budgets are expected to be drastically reduced for the foreseeable future. 

A seemingly inevitable recession is also feared to contribute to the stagnated growth figures currently predicted in the cyber security industry. Many cyber security firms will see this slowdown as expected, given the hit the majority of business sectors have taken during COVID-19. Companies are also aware that cyber security will remain a prominent industry, as digital attacks have continued to increase uninterrupted during 2020. Today, regulation mandates tighter controls on data and privacy, approaches to risk have evolved in digital enterprises, and business models are transitioning to cloud-based or managed services. 

As a result, security has become an increasingly strategic issue and enterprises are less able to dispense with it when cost-cutting. 

Nevertheless, enterprises will struggle with cash flow and budget freezes in 2020 and project postponements are likely to be widespread, delaying investment in new cyber security projects.What some will fear, however, is that companies with tighter budgets will expect more cost-effective services. This could mean fiercer competition between cyber security companies, as firms across the globe will be attempting to provide more protection for less.

Yet, there still has to be some optimism that if cyber threats continue to become more elaborate in design, digital security will still become an essential service in the long-term. This means that, whilst the industry might not be going from strength to strength for a while, cyber security firms will hopefully have a better chance of recovery over th course of the next year or so.

Professional Security:      Mimecast:         PR Newswire:        Business Wire:      ResearchAndMarkets

You Might Also Read:

The Future Of Cybersecurity Jobs:

 

« Satellite Communications Need Protection
AI Helps Organisations Resist Cyber Crime »

CyberSecurity Jobsite
Perimeter 81

Directory of Suppliers

Jooble

Jooble

Jooble is a job search aggregator operating in 71 countries worldwide. We simplify the job search process by displaying active job ads from major job boards and career sites across the internet.

CYRIN

CYRIN

CYRIN® Cyber Range. Real Tools, Real Attacks, Real Scenarios. See why leading educational institutions and companies in the U.S. have begun to adopt the CYRIN® system.

CSI Consulting Services

CSI Consulting Services

Get Advice From The Experts: * Training * Penetration Testing * Data Governance * GDPR Compliance. Connecting you to the best in the business.

Syxsense

Syxsense

Syxsense brings together endpoint management and security for greater efficiency and collaboration between IT management and security teams.

North Infosec Testing (North IT)

North Infosec Testing (North IT)

North IT (North Infosec Testing) are an award-winning provider of web, software, and application penetration testing.

SSL247

SSL247

SSL247 is Europe's leading Web Security Consultancy Firm. We enjoy long-standing partnerships with Certificate Authorities including Symantec, GlobalSign, Entrust Datacard, Comodo, Thales and Qualys.

Perforce Software

Perforce Software

Perforce helps companies build complex software products more collaboratively, securely, and efficiently.

Irish Reporting & Information Security Service (IRISS)

Irish Reporting & Information Security Service (IRISS)

IRISS-CERT is Ireland's first CSIRT (Computer Security Incident Response Team) to provide services to all users within Ireland.

LogmeOnce

LogmeOnce

LogmeOnce provides users with solution to multiple Password problems, Single Sign-On (SSO), and Identity Management.

Redscan Cyber Security

Redscan Cyber Security

Redscan Cyber Security is a Managed Security Services Provider (MSSP) that enables businesses to effectively manage their information security risks.

Trustlook

Trustlook

Trustlook's SECUREai engine delivers the performance and scalability needed to provide total threat protection against malware and other forms of attack.

Upstream Security

Upstream Security

Upstream Security is the first cloud-based cyber-security solution that protects the technologies and applications of connected and autonomous vehicles.

Clayden Law

Clayden Law

Clayden Law advise global businesses that buy and sell technology products and services. We are experts in information technology, data privacy and cybersecurity law.

THEC-Incubator

THEC-Incubator

THEC-Incubator program is designed for international and ambitious tech startups in the Netherlands. Areas of focus include Blockchain and Cyber Security.

Rogers Cybersecure Catalyst

Rogers Cybersecure Catalyst

Rogers Cybersecure Catalyst helps Canadians and Canadian companies seize the opportunities and tackle the challenges of cybersecurity.

Cympire

Cympire

Cympire significantly increases an organisation’s Cyber Resilience through continuous Training and Assessment. Cyber Security Training Platform. Cloud-based and fully customizable Cyber Range.

KirkpatrickPrice

KirkpatrickPrice

KirkpatrickPrice is dedicated to providing you with innovative security guidance and efficient audit services.

gener8tor

gener8tor

The gener8tor Cybersecurity Accelerator offers a cutting-edge program in San Antonio, home to the second-largest concentration of cybersecurity experts in the United States.

RiskOptics

RiskOptics

RiskOptics (formerly Reciprocity) equips organizations with one of the most intuitive and powerful information security and cyber risk management solutions in the market.

Oxford Information Labs (OXIL)

Oxford Information Labs (OXIL)

Oxford Information Labs brings together world-class software programmers and policy experts to provide a unique mix of expertise and hands on technical solutions.

Abissi

Abissi

Abissi offer cyber intelligence, IoT security, automotive security, red teaming, application security and artificial intelligence security services, with a focus on security by design.